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The bull currency spread is commonly used when traders expect that a currency will appreciate moderately, but not by a lot.
A bear currency spread—like its counterpart, a bull currency spread—involves buying an option (the long leg) for a particular currency and selling an option (the short leg) for the same currency and expiration at a different exercise price.
Range trading is one technique forex traders can use in an effort to meet their investment objectives. Some traders use this approach in an attempt to identify ranges, predict how a currency or currency pair will behave, and profit from such expectations. As always, no investment strategy is guaranteed. Certain traders harness ranges to forecast that a currency will remain between certain highs and lows. However, the currency could break…
An option is a contract that grants the holder the right, but not the obligation, to either buy or sell an underlying asset or market factor during a specific time frame.
It is important to know the difference between Options and futures contracts and when to use either.
What Is A "Trailing Stop"? In order to properly define a trailing stop, we must first define a simple stop loss. A stop loss order is an order to buy or sell a given security at a specific price, once the market hits the defined stop loss price. At that point, the original market position is rendered "net zero" or "flat." A trailing stop is a bit more complex in…
A derivative contract is an agreement that allows for the possibility to purchase or sell another type of financial instrument or non-financial asset.
The global financial system is made up of a series of institutions and capital markets that has come to be known informally and collectively among investors as "the market." The market can be understood as the collective global arena for buying and selling financial and physical assets. The Ever-Moving Market While integrally linked to what economists call the "real economy," which represents the sale and purchase of physical goods and…
Austerity refers to actions taken by a government, to reduce its budget deficit using a combination of spending cuts or tax rises.
A fiscal cliff is any series of potential economic events and factors that could combine to cause a severe and sudden economic downturn.
The ability to increase market exposure past actual investment.
When executing customers' trades, FXCM can be compensated in several ways, which include, but are not limited to: spreads, charging commissions at the open and close of a trade, and adding a mark-up to rollover, etc. Commission-based pricing is applicable to Active Trader account types.
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